If you've already built a strong core and are looking for some outliers to supercharge your portfolio, here are my top recommendations.
Nearmap – $2,500
Nearmap Ltd (ASX: NEA) is a business-to-business solution which allows companies to conduct site visits digitally. This is achieved by using plane-mounted cameras which deliver a high frequency of high-resolution images. In October, Nearmap grew its stock price by 1.8% to $2.71 as of yesterday. If you had held this stock since the beginning of the year, you'd be up a whopping 77%.
Nearmap offers a market-leading product that is capturing the attention of the US market. It generates over 30% of its revenue beyond the ANZ region, and its subscription model ensures stability in its cash flow. With 94% recurring revenue and a hugely untapped market expected to be valued at $14.2 billion next year, Nearmap has a ton of room to grow.
Its FY19 results reflected this strong growth momentum. Earnings before interest, tax, depreciation and amortisation (EBITDA) rocketed 216% higher to $15.5 million. Nearmap has just 1–2% of market share, and I am positive that it will succeed in capturing a large portion of this addressable market.
Sezzle – $2,000
Similar to Afterpay Touch Group Ltd (ASX: APT), Sezzle Inc (ASX: SZL) provides an interest-free instalment solution to its customers. The company has grown 16% higher since the beginning of October, closing at $2.17 as of yesterday, and has had a stellar morning so far today to be up another 4.06% at time of writing.
Sezzle posted fantastic Q3 results yesterday. Active users were up over 200,000 to 644,509, a 49.9% increase in just 3 months. It also increased its number of active merchants, rising 48.7% to 7,507. As a result, underlying merchant sales zoomed 64.2% higher, resulting in a 68.9% increase in revenue to $US3.6 million.
The company also reminded investors of its recent partnership with Visa's CyberSource platform. Sezzle's product is now offered to over 400,000 businesses that utilise CyberSource, and the company is expecting to reap the benefits from this partnership over the next quarter. As I'm a believer that the buy-now, pay-later category has room for more than one competitor, Sezzle's growth to date and meaningful partnerships make this a winning growth company.
Nanosonics – $5,500
Nanosonics Ltd (ASX: NAN) is a healthtech company that commercialises the trophon EPR, an ultrasound probe disinfector which reduces the risk of ultrasound-related cross-infection. Its share price has zoomed 128% higher to $6.76 as of yesterday, although it has dipped slightly in morning trade to $6.71 at time of writing.
A large driver of this growth has been the company's FY19 results. Revenue increased by 39% to $84.3 million and its user base expanded globally by 18% to 20,930. This was attributed to Nanosonics' aggressive international expansion plans having entered new markets across Europe, North America and Asia.
This far exceeded analyst expectations of a net profit after tax (NPAT) of $10.27 million. Nanosonics' NPAT grew by 137% to $13.6 million, with management anticipating that growth levels will be retained in the new year.
